((HT: Arizona Republic))Jim Balsillie's bid to purchase the Coyotes and move the franchise to southern Ontario, Canada, will be withdrawn if it isn't approved by the U.S. Bankruptcy Court by the end of June.
Balsillie's deadline appears in documents filed Tuesday by the attorneys for Coyotes owner Jerry Moyes.
The Canadian businessman says the sale must be completed before the end of next month to allow for setting the team's schedule for the coming season, readying its new home arena in Hamilton and resolving other matters.
Balsillie has offered $212.5 million to purchase the team, contingent on moving it to Hamilton. The NHL wants to find a buyer to keep the franchise in Glendale and says Balsillie needs league approval to purchase and move the team.
David Shoalts from the Globe and Mail continues...
Thomas Salerno said in the document that Balsillie notified the Coyotes that he made this ultimatum in his offer because he “nor any other known entity will fund another year of significant losses.”
Balsillie had said at one point he would be willing to keep the Coyotes in Phoenix for one more year as long as the NHL was willing to pay for the losses. But the NHL declined to respond. This season, the Coyotes are expected to lose more than $45-million (all currency U.S.).
The statement was made as part of a request for amended bidding procedures that was filed in preparation for Wednesday's hearing before U.S. Bankruptcy Court Judge Redfield T. Baum.
The judge is to get a progress report on mediation between the NHL and the Coyotes on how the team will be operated before the sale and to set a timeline for a bankruptcy hearing and sale.
The sale can only proceed if the judge rules at another hearing, scheduled for June 22, that the Coyotes can be moved.
At this point, both sides have agreed on how the Coyotes will operate but have significant differences on the timing of a sale and relocation.
Balsillie, the co-founder of Research In Motion, has offered to buy the Coyotes on the condition he can move them to Hamilton for the coming hockey season. He and the Coyotes originally wanted this completed by the end of June but in the amended request filed on Tuesday they want the deadline moved up to June 12.
Salerno argues that this will allow the new owner “adequate time to, among other things, get the new arena ready for the 2009-10 season, obtain and line up sponsors and television contracts, and sell tickets to games.” It will also give the new owners control of the team before the NHL draft begins on June 26.
The request notes the NHL has agreed to a similar deadline (June 15) but with the exception that the league wishes more time to review ownership and relocation applications. But that is a major sticking point, since the league argues it is not possible to move the Coyotes until the 2010-11 season. The NHL says there are relocation procedures to be followed and the 2009-10 schedule has already been determined.
Judge Baum will have to sort out the disagreement at Wednesday's hearing.
Kevin McGran gets in to the details of the document in the Toronto Star...
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